The process by which LIC chooses shareholder directors for its board has been modified

 The process by which LIC chooses shareholder directors for its board has been modified

In order to accommodate the nomination of shareholder directors to its board, LIC has modified its organizational structure. The position will be held for four years, during which time the employee will be eligible for reappointment.

The state-owned insurance, LIC, said on Saturday that it has modified its structure to permit the appointment of shareholder directors to its board.

"We announce that the Life Insurance Corporation of India (Shareholders of Directors) Regulations, 2023 have been notified in the Indian Gazette on December 1, 2023, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015." The life insurance provider said in a Saturday stock market filing.

The Director of Shareholders shall be chosen by the Board of Directors to serve a four-year term. According to LIC's gazette notice, the position holder may be able to extend his employment for an additional four years.

One of the most costly and well-known initial public offerings (IPOs) on stock markets in the previous year was LIC. The government diluted its 3.5 per cent ownership in the firm to raise ₹20,557 crore.

On the BSE, LIC shares ended the day 1.38% down at ₹670.15 a share. In the last month, the company's share price has climbed by 11.67%.

The Life Insurance Corporation of India (Shareholders' Directors) Regulations, 2023 were published in the Indian Gazette on December 1, 2023, outlining the LIC framework for adding shareholder directors to the board.

According to the rule, LIC Corporation is required to call a general meeting of its shareholders to elect a director after notifying at least one thousand shareholders or one tenth of all shareholders, whichever is less.

The company made it clear in its statement that a shareholder director are unable to keep the same position in more than two firms at the same time after being appointed.

After serving for four years, the individual appointed to this position will be eligible for reelection as well as reappointment. LIC now has nine independent directors, one government-nominated director, MP Tangirala, as well as five executive directors, including Chairman Siddharth Mohanty.